Algeria: Portuguese gas supply deal

Issue
395

27 June 2019

Sonatrach and Portuguese buyer Galp on 11 June signed agreements to continue the supply of 2.5bcm/yr of Algerian natural gas for another ten years. The deal was seen as a boost to Algeria’s under-pressure European take-or-pay supply contracts, continuing a sales agreement first signed in 1994.The Portuguese agreement follows the finalisation of a new long-term supply deal with Eni in May. Running to 2027, this was one of the last deals negotiated by Abdelmoumen Ould Kaddour before his sacking in April following the overthrow of ex-president Abdelaziz Bouteflika.